2008

Infinity Restaurant – A Business Plan

Shruti Aggarwal
064156
3/8/2008
 A

BUSINESS PLAN

On

The SpecialtyRestaurant in the city of Surat

Partial Fulfilment of the Requirements for the

Programme of MBA II (FB&E) (06-08)

By
Shruti Aggarwal
Roll No. 064156

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 TABLE OF CONTENTS

SR. CONTENTS SUB CONTENTS

NO.

1. Acknowledgements

2. Executive Summary
3. Market analysis
Industry Description
Target Market

Market Test Results

Competition

Swot analysis
Barriers to entry into market

4. Company Description
Nature of business

Distinctive Competencies
5. Marketing and sales activities

Market penetration
Growth Strategy
Distribution channel
Sales strategies

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 SR. CONTENTS SUB CONTENTS
NO.

6. Product and services

7. Operations

8. Management and Ownership

Management staff structure

Key managers

Legal structure of business

Owners

9. Funds requirement and its uses

10. Financial Data

Assumptions

Project cost

Cash flows

Profit and loss account

Balance sheet

Discounted cash flows

Payback period

NPV & IRR

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 ACKNOWLEDGMENTS

This business plan has been possible with the direct and indirect help of a number of
people. I would be failing in my duties if I do not express my gratitude to all of them.

First and foremost, I would wish to thank Nirma University for giving me this
opportunity of taking this course whereby I could make a business plan which has
enhanced my skills and given me a concrete path to work on. My heartiest thanks are to
my faculty Prof. Snehal Desai for his continuous facilitation and guidance. He guided me
on every step which helped me thoroughly to prepare this plan. I thank Snehal sir
thoroughly for his unconditional support.

My thanks are due to the various respondents of my market research for taking their time
out and responding to my questionnaire. My sincere thanks are to Mr. Milind Somani,
Owner of Restaurant Sheesha, Surat for providing inside information about various
workings of a restaurant. I would also like to thank Mr. Javed Mansuri , chief Manager of
Narayani 7, Ahmedabad who helped me during the idea conception and development.

I want to thank my father who helped me getting valuable information about Surat as we
have our family business over there. I would also like to extend my thanks to all my
colleagues and friends in Nirma and outside who has been a great support and help
throughout the planning and development of the idea.

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EXECUTIVE SUMMARY

Infiniti – a Specialty Restaurant & Lounge is a 60 seat fine-dining restaurant with a 60

seat lounge. We focus on our multi cuisine menu with a touch of Indian influence.This
restaurant will be located in the booming, and rapidly expanding, city of Surat. The area
where it will be located is a warm and friendly place and we will provide excellent food.
A place where people will always know they will get the best of everything. Infiniti
Lounge & Restaurant will feature a cozy dining room and an elegant lounge. The lounge
will have comfy couches and antique seats. It will be the perfect place to stop in for a bite
to eat, for a drink or for a small business meeting. For extra comfort and to please a large
group of people we will make up special platters for customers.

The menu will change every 3-4 months but keep the favorites. Prices will be competitive
with other upscale restaurants in the area. However, it is the strategy of Infiniti Lounge &
Restaurant to give a perception of higher value than its competitors, through its food,
service and entertainment.

The lounge and restaurant will be open seven days a week. We will offer special theme
nights to attract new customers to Infiniti. The restaurant will be fine dining in a cozy
atmosphere. Warm colors, fresh flowers, soft music, candles and amazing artwork from
some of the areas most notable new artists. This will contribute to a sense of community
and give new artists a chance to show their work for a diverse clientele. The service will
be relaxed, very friendly and correct. We will hire the best people available, training,
motivating and encourage them, and thereby retaining the friendliest most efficient staff
possible.

Most important to us will be our financial success and we believe this will be achieved by
offering high-quality service and excellent food with an interesting twist. We have
created financial projections based on our experience and knowledge of the area.
All in all, looking at all these prospects we firmly believe opening this Lounge cum
restaurant will be fully justified.

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 REASON FOR SELECTING THIS BUSINESS:

The people of Gujarat are very passionate about their food and besides enjoying their
own food, they are also known for spending a lot in restaurants. Surat is one such place in
Gujarat where every man, from the chairman of a large corporate house to the doorman
of a hotel, must take his family out for dinner!
With a population of more than 40,00,000 and an important industrial and business city
of India and therefore perennially full of tourists and visitors , opening a restaurant with
Live counter and Theme music will be one of its kind in Surat. Besides having the finest
Mughlai food served to the taste of the localities , the preparation of live food in unique
style as per their choice in front of them will attract all kind of market segments.
Surat is a balanced city and the food industry has always performed well despite any
depression or competition. Surtis have a good spending power and are really fond of food
as mentioned earlier. There are a number of vegetarian restaurants in Surat but with a
colossal increase in the cosmopolitan crowd in the city there is dire need of multi cuisine
restaurant in the city. As there is no such high end restaurant in the city this innovative
theme restaurant will cater to this need of the people here.
There seems to be high cash inflow and profitability in this business. Moreover, there is
no risk of bad debts since sales are only on cash basis.
Because of all these reasons, a restaurant with live counter and theme music proves to be
highly successful when put up in a practical way.

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Reason for selecting Surat for Restaurant :

We have a family business of Transportation since more than 40 years. This business is
spread all over India and my father is the head of the Western Region. In the Western
Region, our main office of operation is located in Surat. I find Surat to be full of life and
activity at all times. The hustle and bustle of daily life coupled with the need of the
people for entertainment is an interesting combination I observed here. The people of
Surat have an insatiable appetite for food and their love for variety of cuisines is
noteworthy. Surat came across to me as the perfect place to start my dream project,
“Infiniti Restaurant” with uniqueness in it. In addition to the food loving people, I
managed to find a local partner, Mr. Atul Tulsiyan. He is a close friend of my father and
in one of my conversations with him; I found that he was also keen on opening up a
speciality restaurant. Since I stay in Ahmedabad and needed a localite who knows the
city better, I found the perfect partner in him. Mr. V.S.Banthiya has been involved in a
small catering business which he started 7 years back. His expertise of the catering
business will prove to be very valuable for the new venture.

Moreover, we have a very good administrative set up in Surat for our Transportation
business. The Manager of our Surat branch is multi-talented and my interactions with him
on the creative aspects have been intriguing. Daily visits by him to supervise the building
and operating of the restaurant will be of additional help.

Also, Surat as a city is flooded with business and industries. It is a city with peace and
maximum prosperity. A beach at a distance of a 16 Kms from Surat is a major tourist
attraction. City has recently seen the completion of a large number of road engineering
projects, particularly the elevated roads, or flyovers in the diamond and textile zones of
the city. This has significantly cut down on the commuting time for many commuters
traveling to the diamond and textile districts.

All the above reasons make Surat a viable option to open up a restaurant since it boasts
the required environment as well as customer base.

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II. MARKET ANALYSIS

A. INDUSTRY OUTLOOK

FOOD INDUSTRY IN INDIA

• Consumer foodservice value sales grew at a strong 14% in India during 2006,
second only to that of Vietnam and Indonesia. A robust economy which put
more money in the hands of consumers and leading to growing disposable
income, increases in the number of working women, and the convenience offered
by these outlets all contributed to growth in 2006.
• Most consumer foodservice outlets have introduced delivery services as well and
this has also helped value sales to grow. Catering to the bottom end of the income
pyramid, street stalls/kiosks is the most common type of consumer foodservice
outlet in India, followed by the ubiquitous full-service restaurants.
• Witnessing value growth of over 20% in 2006, India saw the most dynamic
growth within hotel industry in Asia Pacific during 2006, with most other
countries witnessing single-digit growth. Increased availability, novelty in terms
of products and offerings, and convenience were all factors driving fast food
growth in India during 2006.
• Estimate says that there are at least 140,000 restaurants in urban India.
• While the number of conventional restaurants ranges between 15-20 numbers per
Lac of population.
• It is estimated that the total number of restaurants could touch 200,000 in year
2010 and 280,000 in year 2020.
• There are almost 1.85 million people working in restaurants across India.
• Employment is forecast to increase to 2.73 million by the year 2020.

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Restaurants in Gujarat:

• Gujarat ranks 5th among all states in India in terms of the total number of
restaurants.
• Growth rate in restaurant industry in the state is 12% per annum
• There is a lot of opportunity for growth in this target population because Gujaratis
are known as “Food Lover”
• At all the income levels especially at the middle and the upper level, the
disposable income is tremendously increasing in this state
• Also the number of Business Class consumers is increasing, due to “The
corporate boom”

(In %)

Conventional

8 Café
16 30
Fast Food

Dhaba

Pubs / Bars
11
6
Sweet Shop
13 16

Corner

Source: Ministry of Tourism, Govt. of India (2005)

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Stand-alone outlets dominate value sales
Of the total consumer foodservice value sales in India during 2006, 80% was accounted
for by stand-alone outlets. That said, retail, travel and leisure locations continued to
chip away at the contribution of stand-alone outlets that year. Retail outlets have gained
in popularity by virtue of their being seen by consumer foodservice players as high-
footfall locations. On the other hand travel locations such as airports and railway stations
have gained prominence as these provide the best means of following the increasingly
mobile consumer.

With a constant value CAGR of 8% between 2006-2011, consumer foodservice in India

is predicted to witness one of the fastest growth rates in Asia Pacific. During the same
period, more than 500,000 outlets are predicted to be added, taking the total number of
outlets in India close to 2 billion and second only to China in this region. While new
domestic players are likely to make their appearance, a host of international companies
are also expected to enter India. Some of the prominent brands which are predicted to
make their foray include Starbucks, Burger King and Church’s Chicken. The existing
brands, such as Café Coffee Day, McDonald’s, KFC etc, have also lined up expansion
plans to move beyond the metro cities. As players continue to build strong regional
brands, the franchising of outlets is expected to become more commonplace over the
forecast period

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B. TARGET MARKETS

1. Characteristics of target market

Depending on the market research conducted by us we concluded that the market for
Infiniti Restaurant will cover a large area of diverse and densely populated groups. It will
be located in the heart of the city which is convenient for the people to come and is
frequently visited by tourists. It is also an area known for and catering to the demographic
group we are targeting.

Target group

Primary target Secondary target

Youth (age group of 15 to Business executives Middle aged group

30)

a. Critical Needs

The people of Gujarat are very passionate about their food and besides enjoying their
own food, they are also known for spending a lot in restaurants. Surat is one such place in
Gujarat where every man, from the chairman of a large corporate house to the doorman
of a hotel, must take his family out for dinner!
Surat is a balanced city and the food industry has always performed well despite any
depression or competition. Surtis have a good spending power and are really fond of food
as mentioned earlier. There are a number of vegetarian restaurants in Surat but with a
colossal increase in the cosmopolitan crowd in the city there is dire need of multi cuisine
restaurant in the city. As there is no such high end restaurant in the city this innovative
theme restaurant will cater to this need of the people here.

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b. Extent to which these needs are currently met

Currently there is no Lounge in the city though there are a few restaurants which offer
Mexican and Italian food. Yellow Chillies is one such restaurant which tries to offer
variety of food. So in relation to the demand, the sources for need fulfillment are very
scare which gives ample scope to us.

c. Purchasing decision makers and influencers

For our business the decision maker and influencer could be anyone, be it housewife,
men or even the children as everyone like to eat out. As it will be divided into two
sections, the restaurant will feature 2 venues in one : “Infiniti Lounge” and “Infiniti full
dining service” which will serve a wide range of clientele from the youngster to the
family visitors. So the influencer would be all these people at different times. This
concept will offer customers variety, offer multiple dining and entertainment options
within a single establishment.

d. Seasonal trend

In a restaurant there is no specific season where there will be more foot falls. But during
season time , like diwali festival the rush will be more in the restaurant as people prefer to
eat out more during that time. Also as Surat has lot of Jains we expect there will be heavy
rush after the (paryushan) is over. Also during other festival time the sales would be high.
Apart from that, major revenue will come from the weekends as people go out to eat
more during weekends.

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 2. TARGET MARKET SIZE

a. Number of Prospective customers

The Theme Restaurant “Infiniti” will attract 4 different customer profiles which can be
broadly classified as the following primary and secondary target group:

Local population –Surat has a population of about 49,96,391 and is an

important industrial and business city of India. It is perennially full of tourists
and visitors. It is about 250 kms from Mumbai and Ahmedabad.

Colleges and Universities – City of surat has more than 10 colleges and
universities including arts , commerce , engineering , designing , pharmacy
and more. These colleges have large student bodies.

Tourism - Surat tourist attractions have always drawn travelers from different
parts of India. Tourists from other countries also come to the state of Gujarat
to visit the tourist spots in Surat.

Local businesses – Surat is an important industrial and business city of India.
Surat has 41509 units (14.90%) industrial small scale units. It is second largest
constituting 14.9 % share after Ahmedabad.

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b. Primary Target

YOUTH:

The student – Youth of the city which constitutes large share will be attracted towards
this Specialty restaurant which has Lounge with moving live counters and lively interiors.
They would be keen on hanging out at such a place.

Youngsters – the ambience of the restaurant and the tasty cuisine will attract the
youngsters of the city.

• BUSINESS EXECUTIVES:

As the interiors of the first floor will be classy and made it to give the feel of high class ,
it will attract the business associates and executives to have their discussions and lunch
over there in the day time and at night it will attract the families and middle aged group
people.

3. MARKET PENETRATION

The population of Surat is about 50,00,000. We are targeting upper and upper middle
class. If we assume that 2 % of the population of Surat will be our customer base then
the market we are targeting will be of 1,00,000 customers.

After the survey I found that at least 0.3% of the total target will visit us daily if we
operate for 9 hours. That comes to about 300 customers visiting our Lounge and the
restaurant respectively.

This figure is on the conservative side looking at the need of the city, location of our
restaurant, tourists and industries in the city.

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 4. PRICE MARGIN TARGETS

In the hotel industry, there is generally a common price level for similar types of
restaurants so as to maintain uniformity in the industry.
Hence, we too have based our price not in conformity with the cost but on the same
price level as that of the competitors, “Sheesha” for Lounge and “Grand Bhagwati”
for the Punjabi Cuisine. We have kept our prices slightly lower than those of the
competitors so as to attract customers and to penetrate rapidly in the market in the
maiden year.

A. Margin levels

COST OF PRODUCTION V/S SELLING PRICE

1. PASTA

ITEM COST SELLING PRICE

Basil and Tomato Pasta 21.00 75.00
Penne Arabiata 21.00 75.00
Fussili with Red Pepper 21.00 75.00
Sauce
Fussili with baby corn and 25.50 80.00
walnuts
Penne with spring onions, 25.50 80.00
corn and red pepper
Garden fresh fusilli 21 75.00
Spaghetti Verdi 25.50 80.00
Infiniti special pasta 25.50 100.00
Herb fresh pasta 21 75.00
Spaghetti in green sauce 21 75.00

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 2. FRANKIES
ITEM COST SELLING PRICE
Vegetable Frankie 15.00 75.00
Cheese Frankie 20.00 80.00
Paneer and corn Frankie 20.00 90.00

1. LOUNGE STARTERS:
ITEM COST SELLING PRICE
Nachos with cheese layer 9.00 60.00
dip
Bruschetta with tomato and 10.00 65.00
basil
Spicy cheese & herb potato 13.00 70.00
wedges
Chilly Cheese Garlic Toast 9.00 65.00
Babycorn fritters with 11.00 75.00
barbeque sauce
Chocolate Toast 11.00 80.00
Bread Sticks with Cheese & 9.00 65.00
special sauce

6. PIZZA

BABY SIZE MEDIUM SIZE LARGE SIZE

ITEM Cost Selling price Cost Selling Price Cost Selling Price
Italian Pizza 13.50 50.00 21.50 85.00 32.50 110.00
Double Cheese Pizza 21.50 85.00 32.50 110.00
Corn & Pineapple Pizza 13.50 50.00 21.50 85.00 32.50 110.00
Mexican Chilli Bean Pizza 21.50 85.00 32.50 110.00

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Mushroom and pepper
Pizza
Mushroom and garlic
Pizza
Fruit Pizza 17.00 55.00 28.00 90.00 43.50 130.00
Jain Pizza 21.50 90.00 32.50 110.00
Nepolitan Pizza 21.50 90.00 32.50 110.00
Chocolate Pizza 17.00 55.00 28.00 90.00 43.50 110.00

7. Burgers and Hot Dogs

TYPE MEDIUM SIZE LARGE SIZE
Cost Selling Price Cost Selling Price
Minty Cheese Burger 18.00 75.00
All American Burger 18.00 75.00
Alu Tikki Burger 18.00 75.00
Bionic Burger 25.00 60.00
Vegetable Hot Dog 18.00 75.00
Chilli Cheese Hot Dog 21.00 70.00

RESTAURANT:
ITEMS COST SELLING PRICE
Appetizers 8.00 45.00
Soups 12.00 55.00
Salad, Raita 11.00 35.00
Masala Papad 4.00 8.00
Papad Plain 2.00 5.00
Butter Milk 4.00 25.00
Curd 6.00 10.00

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 Vegetables :
ITEMS COST SELLIN PRICE
Koftas 18.50 75.00
Paneers 18.50 75.00
Vegetables 15.00 80.00
Khoya Kaju & Navratna Korma 24.00 80.00

Tandoors :
ITEMS COST SELING PRICE
Plain Roti 1.00 10.00
Butter Roti 2.00 12.50
Plain Paratha 1.50 8.00
Butter Paratha 2.50 10.00
Stuff Paratha 5.00 12.00
Plain Naan 2.50 9.00
Butter Naan 3.50 15.00
Cheese Naan 8.00 18.00
Stuff Naan 5.00 15.00
Butter Kulcha 3.50 10.00
Onion Kulcha 4.00 12.00

Rice & Dal :

ITEMS COST SELLING PRICE
Plain Rice 6.00 40.00
Jeera Rice 9.50 55.00
Pulav & Biryanies 15.00 80.00
Dal fry 12.00 75.00
Spl. Dal Makhni 16.00 85.00
Oven Baked 19.00 85.00

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 B. PRICE PER UNIT

Statement of cost analysis per unit

1. Pasta
INGREDIENT COST
Pasta 5.00
Gravy 4.00
Vegetables/provision items 4.00
Butter 2.00
Cheese 4.00
Spices / oregano 2.00
Sub-total basic recipe 21.00
Baby corn, walnut/spring 4.50
onions/herbs/broccoli
Total – special Pasta 25.50

2. Franky :
INGREDIENTS COST
Maida 1.00
Vegetables 5.00
Oil/Butter 1.00
Spices 2.00
Cheese 4.00
Sauce 2.00
Sub – Total – General Franky 15.00
Extra Cheese 5.00
Total – Special Franky 20.00

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 3. PIZZAS
INGREDIENTS BABY SIZE MEDIUM SIZE LARGE SIZE
Pizza Base 1.00 1.50 5.00
Sauce (Tomato,Garlic,onion,spices) 3.00 5.00 7.00
Provision Items(Red Pepper, Black 2.50 3.00 3.75
Pepper, Oregano)
Cheese(Normal,Mozzarella) 5.00 9.00 13.00
Vegetables(Capsicum, Onions) 2.00 3.00 4.00
Sub-Total- General Expenses 13.50 21.50 32.50
Chocolate/fruits [Extra] 3.50 6.50 11.00
Total – Special Pizzas 17.00 28.00 43.50

4. Burgers and Hot Dogs :

INGREDIENTS Normal Size Jumbo Size
Bun 2.00 3.50
Patis [Potato,spices,oil] 4.00 4.75
Cheese 5.00 7.00
Vegetables 2.00 2.50
Sauce 3.00 4.50
Sub – Total Burger/Hot Dog 16.00 22.25
Accomplishments (wafers) 2.00 2.75
Total – Special burger/Hot Dog 18.00 25.00

2. Starters :
a. General starter
INGREDIENTS COST
Bread 1.75
Oil 0.50
Sauce 2.75
Sub – total – General Starters 5.00
Cheese 4.00
Total – Special Starters 9.00

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b. Nachos
INGREDIENTS COST
Nachos 3.00
Salsa sauce 1.25
Vegetable 0.75
Sub – total – General nachos 5.00
Cheese 4.00
Total – Special nachos 9.00

c. Brushetta with Tomato and Basil

INGREDIENTS COST
Bread sticks 3.00
Olive oil 0.50
Vegetable 2.75
Sub – total – General nachos 6.25
Cheese 3.75
Total – Special nachos 10.00

d. French Fries
INGREDIENTS COST
Potatoes 2.50
Oil 1.00
Sauce 2.75
Spices 1.00
TOTAL 7.25

1. Vegetables :
a). Kofta/Paneer
INGREDIENTS COST
Paneer/ Kofta 10.00
Gravy 3.50
Spices 2.00

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Butter/Oil 3.00
TOTAL.. 18.50

b). Dal
INGREDIENTS COST
Vegetables 6.50
Gravy 3.50
Spices 2.00
Butter/Oil 3.00
TOTAL… 15.00

c). Kaju Khoya And Korma

INGREDIENTS COST
Kaju/Dry Fruit 15.50
Gravy 3.50
Spices 2.00
Butter/Oil 3.00
TOTAL.. 24.00

d) Rice
INGREDIENTS COST
Plain Rice 6.00
Jeera/Peas 3.50
Vegetables/Spices/Oil 5.50
TOTAL.. 15.00

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5. METHOD BY WHICH SPECIFIC MEMBERS OF THE TARGET
MARKET WILL BE IDENTIFIED

Apart from the general public which will be our primary customer base we will be
targeting some specific groups such as government and local businessmen. For this
Trade directories and General directories will be used.

6. MEDIA THROUGH WHICH COMMUNICATION WITH SPECIFIC

MEMBERS WILL BE DONE

Various mediums will be used for communicating the opening of our restaurant and
making our presence felt. Broadly the mediums used are as follows which are
explained in detail in the marketing and sales activities section.

Print Media
This will include newspaper and brochures

Radio advertisement

Hoardings

Internet

Cable

Public relation

Publicity
All this and other strategies will also be used.

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7. SECONDARY TARGET MARKETS

The secondary target market will include the following groups:

Tourism - Surat tourist attractions have always drawn travelers from different
parts of India. Tourists from other countries also come to the state of Gujarat
to visit the tourist spots in Surat.

Local businesses – Surat is an important industrial and business city of India.
Surat has 41509 units (14.90%) industrial small scale units. It is second largest
constituting 14.9 % share after Ahmedabad.

Government officials – their meetings

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C. MARKET TEST RESULTS

1. Potential customer contacted

• Elements: males or females above the age of 15 visiting the restaurant

• Sampling units: people of surat.

• Extent: Surat city.

• Time: January- february 2007

2. Objective of the survey :

To ascertain the need and various aspects of marketing strategy for the
Lounge cum Specialty restaurant in Surat .

The various research objectives included :

• To identify the need of such a restaurant in the market.

• To ascertain the feasibility of such concept in the market.
• To find the target market for the Lounge.
• To find the most preferred area for the magazine.
• To ascertain the price that the consumer will wish to spend.
• To identify the different usage Reasons (Need State) which would induce them to
visit such a restaurant.
• To find the right mediums for Promotion strategy to be developed.

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3. INFORMATION ASKED AND GIVEN TO THE CUSTOMER

1. How frequently do you visit restaurants ?

2. With whom do you usually go?

Friends

Family

Colleagues

Others
3. What is your monthly expense on restaurants ?

Less than Rs. 300

Rs. 300 – 600

More than Rs. 1000
4. Which restaurants do you visit ?
5. Which aspects do you like about that restaurants ?

Food

Service

Status

Physical Environment

Crowd

Any Other
6. Which type of food do you prefer ?

Chinese

Punjabi

Continental

Mexican

Italian

Other

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 7. Do you like to experiment with the cuisine when you eat out ?

YES NO

8. Are you aware of the Lounge Restaurant?

YES NO

9. Would you like to have one such Lounge in your city?

YES NO

10. What type of food would you like to have in the Lounge? Rank in the order of
your preferences.

Mexican

Italian

Pizzas

Frankies

Sizzlers

New dishes
11. Which area would you prefer for the Lounge cum Restaurant ?
………………………………………….
12. From which sources do you generally come to know about the new restaurant in
your city ?

Newspaper

Radio

Cable

Hoardings

Word of mouth

Other

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 13. At what time would you visit the following?
Restaurant Discotheque

Noon

5 p.m. to 8 p.m.

8 p.m. to 10 p.m.

10 p.m. to 12 p.m.

14. Do you have any suggestions regarding a Speciality Lounge cum Restaurant ?
………………………………………………………………………………………

4. INFORMATION RECEIVED AND INTERPRETATION

The Dining Experience: Customer satisfaction with food and service has been and
continues to be of utmost importance, but our findings indicate that the decor, lighting,
concept, and other options to improve the dining experience are also factors in customer
decisions. Infiniti takes all these factors in consideration for the design of this
cosmopolitan restaurant

New experience: Our finding indicated that lot of restaurant offered food and good food
also but the people were looking for a place which could offer something different and
new. So we came with the idea of starting a Lounge which is not there in Surat till now.
Also the Live Counter Service will also be a new attraction for the clients

Reasonable Prices: This was no surprise given the economic tide. Although the
restaurant industry as a whole has seen growth in the years, customers are demanding
value for their dining . Infiniti’s menu is priced at a mid-tier level which attracts upper
middle and higher class.

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Also I found that :

From the survey I found that people in Surat are really fond of eating out
and also spend a lot on food.

Also majority of youngsters expressed the need of having Lounge where
they could hang out.

Almost 60 % of the surveyed people said that they wanted to try different
cuisine and have taste for it.

Almost all the people showed their eagerness to visit a restaurant which
provided something new and different.

Another important thing we noticed in the survey was there was shortage
of restaurants for organizing dance party in the city.

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D. COMPETITION

There are many restaurants in surat. There are about 65 restaurants in the city. But those
are mainly gujarati and Punjabi food restaurants. The main competition that we will face
will be from the following players :
• Sheesha which provides different variety of food.
• Yellow Chillies which is a Sanjeev Kapoor’s restaurant and serves good variety of
food
• Holiday Inn , the only big group in Surat

Then there will be other indirect competition from all other restaurants in surat.

2. STRENGTHS:

The concept is new and different for the people of Surat. This will be the
first Lounge in the city. So we will get the first mover advantage.

The chef and staff of the restaurant will be experienced and proficient.

The menu which includes variety and multi cuisine is not offered by many
restaurants in Surat.

It will be an exclusive place for organizing parties (theme parties) which
will be an added strength.

Our restaurant will have the capacity and ability to serve a large clientele.

The place (Surat) is one of the most developing city in the world. The
spending power of people is high which is the reason why some of the big brands
are opening up in Surat. People here are very fond of food and spend exuberantly
on food. They have liking for food and also the taste for good food. They are also
experimental with there food and are fond of trying new cuisines. This will give
us an edge over others by offering new cuisines.

Surat is also famous for its tourist’s attractions. This will also help us to
attract them with our Lounge attraction.

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It will be a place which could serve a large clientele from the age group of
15 to 50. There will be place for youngsters as well as the family who visits the
restaurant.

3. WEAKNESS:

Our menu includes different varieties and multi cuisine for which highly
qualified chef will be needed which is difficult to get.

The capacity of 60 seems meager looking at the prospects of the business. But
initially due to cost constraints we cannot expand right now.

4. THREAT:

Acceptability of the new idea by the people

New competitors that would come up looking at the success of the
venture.
5. OPPORTUNITIES:

Starting outdoor catering services

Opening up new branches in same and other cities

Going for franchisee option and expand the chain.

32 | P a g e
6. BARRIERS TO ENTRY INTO THE MARKET:

a. Cost

The cost of the project is not that high and break even will be achieved in less than 3
years. So cost will not be a barrier for us.

b. Time

There are right now no major players in the market for the services that we will be
offering. So the time right now is most apt and we can take advantage of this before it
becomes a barrier

c. Technology

There is no technology required in my business but the live counter service we will be
providing will require skills by the chef preparing it. We will specialize in that which
will act as a barrier for other palyers

d. Key Personnel

This can act as a barrier as highly qualified staff and especially the chef will be
required. If we are not able to get the chef with required skills and not able to retain
them then it will become a barrier for us.

33 | P a g e
III. COMPANY DESCRIPTION:

VISION:
To be the best concept restaurant in the city of Surat providing the best services.

MISSION:
The “Infiniti” restaurant Mission is two-fold, with each being as integral to our success
as the next.

Product Mission - Provide customers the finest quality food in the most
efficient time.

Economic Mission - Operate and grow at a profitable rate through sound
economic decisions.

A. Nature of the business

“Taste the spice and Dine in Style”. For a city like Surat, acknowledged as one of the
fastest growing cities in the world by the United Nations, a restaurant which matches the
class and ambience of the metros is the need of the hour.
“INFINITI”... the specialty restaurant will be one of its kind in the city of Surat where
people are crazy about food and spend exuberantly on it. Divided into two sections,
the restaurant will feature 2 venues in one : “Infiniti Lounge” and “Infiniti full dining
service” which will serve a wide range of clientele. This concept will offer customers
variety, offer multiple dining and entertainment options within a single establishment.
The spatial and menu divisions will broaden our appeal and provide our customers with a
different experience on each visit.

1. Design of the Specialty Restaurant

The specialty of the restaurant will be its Moving Live Counter Service. The restaurant
will provide custom made food as per the choice of the customers, prepared live in front
of them. The best part will be that the customers would not have to go to the live counter
and stand till the food is being prepared. Instead the live counter trolley will be moving

34 | P a g e
around in the restaurant and will come to the table of our customers and prepare food
live.
As I mentioned that the restaurant will be divided into two sections, the basement section
will be the Lounge Section of the restaurant. This section will feature a comfortable and
open concept design. It will have the low seating comfortable sofas and music will be one
of the attractions of this section. There will be themes based on music for this section.
Two days there will be lounge music played, one day international music, on weekends
club music and one day soft music will be played. One Live Counter Service trolley will
be for this section as well.
The section on the ground floor will have classy furniture and Live Counter Service. The
atmosphere here will be such that caters to a young but mature adult crowd. Surat being
an industrial hub it will also provide as an exclusive section for the executive meets and
lunch.
2. Method of need satisfaction
“Infiniti” is focused on servicing Surat’s growing demand for a multi cuisine eating
experience. For lack of a better term we are launching a ‘multi-ethnic’ cuisine restaurant
– a lounge and a restaurant concept that responds to Surat's need for selection and choice.
“Infiniti” is also keen on providing international cuisine one day a week in its menu. The
upper middle class and upper class demographics of Surat fit this concept perfectly

3. Individuals/organizations with the needs

In a city like surat , everyone from age of 10 to 60 is fond of food. We are targeting the
upper middle class and upper class demographics of Surat, which would fit this concept
perfectly. Also as it is a industrial hub it would attract various organizational executives
for business meetings and lunches.

35 | P a g e
B. Distinctive Competencies

1. Operating criteria and Geographical Location

The restaurant will be located in City light road which is the main area for eating joints in
Surat. The restaurant and lounge will service lunch, dinner, and after-hours dining during
the week and weekends. The restaurant will operate during peak service time to take
advantage of street traffic, and after-hour patronage from the entertainment facilities in
the area. Service will be available during the following hours:
Lounge Timings:
Lunch : 11:00 a.m to 2 :00 p.m
Snack time : 5:00 p.m to 7:00 p.m
Dinner : 7:00 p.m to 11:00 p.m

Restaurant Timings:
Lunch : 10:30 a.m to 3:30 p.m
Dinner : 7:00 p.m to 11:00 p.m

2. Personnel
The restaurant will employ highly qualified and efficient staff. There will be a senior chef
who is highly reputed and has immense experience in this field. He has been the chef of
Taj and Mocha and is popularly known for introducing new and innovative dishes. Apart
from that the managers and waiters will be given proper training and will be employed
after they qualify the qualifications requirement.

3. Quality efficiency
As far the hospitality sector is concerned, a business can flourish if and only if it serves
high quality food. Considering the importance of quality, the restaurant will never
compromise on the quality aspect even if has to make an adjustment on costing. It will
also fulfill the hygiene standards set by the Municipal Corporation.

36 | P a g e
Food catering service deals mainly in perishable items and is thus vulnerable to
degradation of quality. Thus, necessary steps will be taken so that the quality of food is
maintained at its highest level.
For the purpose, the restaurant will satisfy all the conditions of PFA [Prevention of Food
Adulteration] and BPMC [Bombay Provincial Municipal Act sec. 376 (1) ].
In order to make sure that the quality aspect is given prime importance, a strict eye on
each and every step from procurement of raw material to the serving plates will be kept.
Rules will be set up regarding the use of raw material for the cooked items which will
include :

The usage time of bakery items shall not exceed more than 2 days of their
manufacturing.

Fresh vegetables will be used daily so that nutritional value of food is maintained.

Proper care will be taken in storage and usage of milk.

The cooking and serving utensils shall be cleaned properly and stored in such a
way that they remain free of germs.

The storage as well as the washing area will be cleaned regularly so that they
remain disinfected from germs and insects.

The kitchen staff will strictly follow cleanliness.

The restaurant will be equipped with 2 Aqua guards so that clean disinfected
water will be served. The coolers for storing water shall be cleaned daily.
In this way, ample emphasis will be given to quality.

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IV. MARKETING AND SALES ACTIVITIES:

A. Overall Marketing Strategy

To sustain in stiff competition during this recession period, we have planned certain
strategies to boost up our sales.

In the initial few moths we will emphasize a lot on the advertising factor to induce
consumers to visit our restaurant and once they visit, a word of mouth will take care of
the rest. Advertisement will be done keeping in line with the target market of the
restaurant. The regular modes of advertising , newspaper , cables , radio and hoarding
will be used as an external medium for two purpose:
• To make people aware of the coming up of the restaurant
• To regularly remind them of the themes and specialty cuisines offered by the
restaurant.

The strategies would be:

• Rather than giving discounts to the customers which we feel is part of stand alone
stores , we will offer “Infiniti Card” to our customers at a nominal rate of
Rs.1000. This way they will become member of the restaurant. It will benefit
them as they would get 10 % discount on their food with this card and couples
would get 20% discount for the same.
This will benefit us in two ways:
o We will be associating our customer with us and they would feel a part of
it.
o They would want to visit repeatedly because of the discounts they will be
getting

38 | P a g e
 • I would tie up with the few stores in surat in the malls such as ISCON mall , such
that a person who makes a purchase in their shop of Rs. 2000 or more will get a
coupon of 10% disc in the “Infiniti” Restaurant on any day between Monday to
Friday. As we all are aware free and discount coupons lure almost everyone, this
will work well for us. This will again have two benefits:
 People would come to the restaurant to use the coupon
 Occupancy would increase on the weekdays

• We will employee a magician and a tattoo person on alternate days in the

restaurant. This will entertain the children and the very young crowd. This way they
will be attracted towards this restaurant and induce parents to come to same place
again.For youth combos will be prepared and also “fixed lunch” system will be
introduced for their convenience and cost saving.

• Another attraction for the restaurant will be that we will be organizing theme parties
for our guest. As one of our partner is a born creative person and also takes classes
and orders in various creative stuff in surat , she would be managing the whole party
from invitations to the end. In this fast moving world, this will ease the work of the
host who sometimes hesitates to give party because of the hassle of organizing it.

39 | P a g e
1. Growth Strategy
As we are into the food business we understand it well that the preferences of people
changes very fast. Also the charm of the restaurant would reduce after few years. So
we have planned the strategy for it from the beginning itself. We would operate this
restaurant for 4-5 years after which we plan to go for chain of restaurants.
People of Surat besides being fond of food also look for variety of food and
experiments with new restaurants opening up. Surat is the most developing city of
India and looking in the Gujarat itself its development is higher than Ahmedabad and
Baroda also. Besides that it is industrial hub and 2 major industries resides there:
Textile and Diamond. Every diamond manufactured has to go through a process
happening in surat. All this makes Surat a tourist spot too. So all this helps to get a
major market share of the city when we would open up another restaurant for which
we would start processing after a year of experience.
Till then we would have build our brand and also the advantage and experience of
this restaurant will help us in starting that restaurant.
Also we have thought of tie up with some big group in the same line for expansion of
the business which will be after 5 years of operation. This will help us to take the
advantage of their brand and grow.

2. Distribution channels

Being a restaurant cum Lounge, we don’t require distribution channels like other
manufacturing business. We are not manufacturing products but providing services
which can be sold only by means of direct selling. So we don’t require distribution
channels. Of course, we are going to take care of our nearby customers who would
want our services delivered at their door step. So we will provide home-delivery
services to our customers. It will be charged as per the distance of delivery. We will
make deliveries free of cost within the range of 2 kms. Other customers can also
enjoy our services providing they order food for minimum Rs 500.

40 | P a g e
 Distance (Kms.) Charges
Within 3 kms Free of charge
3-6 kms Free of charge if they order food for
minimum Rs.300
More than 6 kms Rs. 50

3. Communication

a. Promotion

• Press Release/Grand Opening: Infiniti Restaurant will release a series of

press releases on the opening.

• Editorial Visitation: Leading up to the Grand Opening, and over the first 6
months of operations, we will invite the most influential reporters and editors
from all local publications to Infiniti Restaurant in order to evaluate our menu,
service, and atmosphere.

• Publicity Revenues: We anticipate at least 10% of our annual sales will be

generated directly from our publicity. A full media kit will be sent to all local
publications, and releases on new menu items will be made .

• Government Relations: There are several Government offices in Surat . We

will approach them to cater business luncheons and private functions. This
will offer us higher visibility for future functions and community events.
Word-of-mouth referral is very powerful and particularly amongst the
business community.

41 | P a g e
 b. Advertisement

Each and every firm uses this tool for marketing his business. Also I believe that right
advertising always pays. In my business I would use this medium to reach out to my
customer. At the same time there will be various determinants kept in mind while
selecting the medium of advertisement , its budget , benefit and result.

Objective:
It is said that “If you know where you are going then the journey becomes easier”. Same
would apply here. Being a start up firm our main objective of advertising would be to
able to reach out to our customers and make them aware of the restaurant. This type of
advertising is highly required in the pioneering stage so as to build primary demand.

Restaurant business is flourishing but at the same time there is cut throat competition in
this sector. So our advertisement will be a forum of persuasive advertising as it will
persuade people to buy our services. It would not be enough to inform people about our
restaurant , it will be equally important to keep the loyal customers reminded of the
services and new attractions in the restaurant through our advertisement.

Budget:
Our firm is in the introductory stage of its Product Life Cycle. So, it requires huge
advertising budget to build awareness and to gain consumer trial. Also, we have to
advertise more heavily to be heard amongst the existing competitors in the market. The
budget also increases because of more advertising frequency in the 1st year. Hence the
advertising budget at Rs. 25,00,000 in the 1st year which will be written off in three years
time at a decreasing rate with Rs. 15,00,000 being written off in the 1st year. The
advertising budget will remain constant in the following years at the amount of Rs.
5,00,000 each year.

42 | P a g e
Advertising Message:
The advertising message should be desirable, exclusive and believable as well as
focusing on more selling proposition. We have to focus the attention on food and dance
as well as attract the young crowd. The following are some of the messages that will be
displayed in our advertisements:
1. Come and Experience the Difference !!

Media :
The media for our advertising is newspapers, radio, hoardings and cable.

3. Newspapers :
Among the newspapers, I have selected “ The Times Of India “ and “Gujarat
Samachar” only because these are the 2 major newspapers in English and Gujarati
respectively that reach out to the maximum numbers of readers that come under target
market.
The restaurant and lounge will be featured in the E-ting out column of “The Times Of
India”. At the launch party journalist of various newspapers will be invited for Dinner
which will serve as a free medium to gain publicity when they will write about our
new venture with an innovative idea.

Name Rate Image & Area Cost/Image Frequency Amount

[Rs cc] Area [sq.cm.cc]
Surat 175 Front Colour 220 38500 12 462000
Times Page
165 Back Colour 220 36300 12 435600
Page
Sandesh 165 Back Colour 220 36300 12 435600
Surat Page
TOTAL.. 13,33,200

43 | P a g e
 4. Radio

Surat being a small city and people here found to be fond of listening to radio, this
would be an effective mean of informing public regarding our new Restaurant cum
lounge.
In Surat there are 3 radio channels (98.1, 94.3 and 91.1 F.M) currently being aired.
The popularity of these radio channels is high and after my survey I found radio being
an effective medium through which people get to know about the latest happenings in
the city.
So I have decided to give advertisement about the opening of the restaurant on 1 of
the radio channels. This will be done for the initial 1 month. This would be done for
making people aware of our restaurant. Once they visit the place , word of mouth
would do the rest of the job.

The expense for the same would be as follows :

Name Per second Total Cost/Image Frequency Total
(rate) seconds Amount
Radio 200 30 6000 30 1,80,000
Mirchi
TOTAL.. 1,80,000

3. Hoardings :

Only one hoarding will be put up in the in front of the Iscon Mall which will feature
the Lounge cum restaurant. . The hoarding agents provide painting services to the
customers so there is no need to incur extra charges for the painting of the hoarding.
Only one will be put up because Surat being a small city we don’t feel the need of
placing many hoardings. Also Iscon mall is visited very frequently by people and
almost 80 % of the target market that we are targeting visit this mall atleast once in a
month.
This will cost us 25,000 for 1 month.

44 | P a g e
 4. Internet

Here the non price techniques will be used to market our restaurant. A blog site
will be made by us where people can come and write. Also a community will be
started on Orkut and Face book which are the two medium which are in rage
amongst the people these days. For almost every joint there is a community here.
This would be the easiest medium to give information regarding the menu ,
concept, new launch and customer feedback.
5. Online Advertising: Orkut, & Blog

C. Cable

We will be advertising on the citi cable for 1 month to make people aware of the
specialty restaurant in their city.

c. Public relation

Critics' Choice: Prior to the Opening there will be two preliminary parties
catering to the Media and Critics community. We will encourage the media and
restaurant critics to meet at the restaurant and review the decor, service and food.
This will be a preliminary review, where we will consider constructive input to make
minor revisions prior to the true Grand Opening. This initial review and input will
give critics and media commentors a stake in Infiniti's success, through their
contributions to the final design.
The total expense for the same would be 25,000

45 | P a g e
 d. Printed Material

Brochures: Make a brochure for the in-town hotels and business establishments
to provide to their guests and staff, containing interior pictures of our restaurant,
menus and prices. This will cost us 12,500 for the same.

4. Other strategies

A feedback form will be designed by which customer suggestion would be

taken about the restaurant. This would help us to serve them better by
taking their suggestions. From that itself we would prepare a database
about the information of the customers as in their name , address , phone
no. , birth date etc.

By this customers would be regularly informed about the new cuisines,
food festivals , new happenings and schemes in the restaurant.

Also on the birth days and anniversaries of the customer, discount coupons
will be sent. This way they would want to enjoy our delicacies and we
would get a chance to serve our customers and their family and guests on
their special occasions.

We will try to tie up with the party organizers and children party planners.
There are 3-4 such people in Surat who does that , so then they would
suggest us for the party venue or outdoor catering and in turn we would
give them commission on that.

46 | P a g e
 B. Sales strategies:

1. Sales force

As it is a restaurant business no sales force will be needed. It is the service that we

provide which will help us in selling more and attracting our customers.

2. Sales activities

Our strategy will be simple: we intend to succeed by giving our customers a combination
of delicious and interesting food in an appealing environment, with excellent customer
service, whether on their first visit or their hundredth.

Our marketing strategies are designed to get critics and initial customers into our doors.
Our sales strategies must take the next step and encourage customers to become repeat
customers, and to tell all their friends and acquaintances about the great experiences they
just had at Infiniti.

New restaurants often make one of two mistakes: they are unprepared or under prepared
for opening, and initial poor service, speed, or quality discourages customers from
returning, or they spend all of their efforts at opening, and are unable to maintain the
initial quality customers expect on return visits, decreasing word of mouth advertising
and leading to poor revenues.

Infiniti's sales strategy requires consistently high quality food, service, speed, and
atmosphere. We can accomplish this by:

Hiring employees who genuinely enjoy their jobs and appreciate Infiniti's unique
offerings

Continually assessing the quality of all aspects mentioned above, and
immediately addressing any problems

Interacting with our customers personally, so they know that their feedback goes
directly to the owners

Evaluating food choices for popularity, and keeping favorites on the menu as we
rotate seasonal foods and specials

47 | P a g e
 Thus, the total amount of Advertising Budget would be as under :

PARTICULARS COST
News papers 1335000
Radio 1,80,000
Hoardings 75000
Cable 60,000
Other advt. expense 1,00,000
TOTAL 17,50,000

48 | P a g e
V. PRODUCTS AND SERVICES:

A. Detailed product/service description

All preparations would be made considering customer’s health
and taste

Some preparations will be available in Jain preparation also

1. LIVE COUNTER MENU

i) Pastas
[White, Red and Green Sauces]
[Served with garlic bread]

Basil and Tomato Pasta

Penne Arabiata

Fussili with Red Pepper Sauce

Fussili with baby corn and walnuts

Penne with spring onions, corn and red
pepper

Garden fresh fusilli

Spaghetti Verdi

Infiniti special pasta

Herb fresh pasta

Spaghetti in green sauce

ii) Frankies

Vegetable Frankie

Cheese Frankie

Paneer and corn Frankie

Sizzling platter

Paneer shashlik Frankie

Vegetable A la kiev

49 | P a g e

LOUNGE MENU

iii) Mocktails (Lounge/Restaurant)

“lemon” special cooler

pina colada

hawaaian cooler

lemon cooler

pink lady

fresh lemon soda

fresh seasonal juice

java run

fruit punch

ice tea (peach & lemon)

mineral water

aerated drinks

iv) Lounge shakes

Chilled coffee

Toblerone shake

Kitkat shake

Oreo shake

Hersheys shake

Mint shake

Infiniti special coffee

50 | P a g e
v) Lounge Scintillating starters

Nachos with cheese layer dip

Bruschetta with tomato and basil

Spicy cheese & herb potato wedges
vi)
Chilly Cheese Garlic Toast
vii)

Babycorn fritters with barbeque sauce

Chocolate Toast

Bread Sticks with Cheese & special
sauce

Bread Sticks with sauce

viii) Salads
[served both in Lounge and Restaurant]

Mixed capsicum salad

Watermelon and corn salad

Broccoli salad

Pasta salad

Neapolitan salad

Three bean salad

Fruit salad

Russian salad

Avocado, tomato & mozzarella pasta
salad

51 | P a g e
 ix) Pizzas
[ Size : 3” (Baby), 6” (Medium), 12” (Large) ]
[ Type : Soft base and crisp base ]

Italian Pizza

Double Cheese Pizza

Popeye
(spinach and onions)

Hawaiian Fantasy
(Corn and Pineapple Pizza)

Mexican Chilly Bean Pizza

Mushroom and pepper Pizza

All – 4 – one
(capsicum, mushroom, olives and onion)

Fruit Pizza

Jain Pizza

Neapolitan Pizza

Chocolate Pizza

Baby Pizza – (only for particular pizzas )

(extra cheese)

iv) Burger, Hot Dog & French Fries [ Presented with wafers & French fries ]

Minty Cheese burger

All American Burger

Aloo Tikki Burger

Bionic Burger (Jumbo burger with special vegetable tiki
accompanied by vegetable cheese sauce & special sauce ).

Vegetable hot Dog

Chilly Cheese Hot Dog

52 | P a g e
x) Sizzlers
[Accompanied with our specialty bread and French fries]

Paneer mushroom steak

(paneer steak served with mushroom capsicum)

Paneer BBQ Steak
(paneer steak tossed in barbeque sauce) accompanied with
bread and French fries)

Paneer pepper Steak
(paneer steak tossed in pepper sauce)

“Infiniti” Veg. steak
(paneer steak in special proprietary sauce)

xi) International Cuisine

[Served both in Lounge and Restaurant]

Greek Cuisine
( Scordlia Potatoes with all time barbequed baby vegetables
and Greek Rice)

Indonesian Cuisine
(Indonesian fried noodles, curried stew with peanut sauce
and plain rice)

Mexican cuisine
(Enchiladas with Mexican rice and tostadas)

Oriental cuisine
(vegetable fried rice with sweet and sour vegetables and
paneer chilly)

Continental cuisine
(broccoli and cheese potato pie, creole style pasta on the bed
of herbed rice)’

Thai cuisine

53 | P a g e
 xii) Deserts

Lemon special sundae

Banana sundae

Pineapple sundae

Lamington Square
(indulge in layers of chocolate cake, vanilla and nuts)

Sweet waffles topped with walnut filing and
chocolate sauce

Ice cream
(vanilla, strawberry, chocolate, pineapple, choco chips)

Sauces (single topping)

Chocolate walnut sauce

Figs & honey sauce

Peach & apricot sauce

Irish coffee sauce

2. RESTAURANT MENU:
ii) Soups

Tomato Soup

Minestrone Soup

Sweet Corn Veg. Soup

Hot & Sour Veg Soup

Veg. Noodles Soup

Cream of Veg. Soup

Manchow Soup

Veg. Mushroom Soup

54 | P a g e
iii) Oven Baked

Baked Mushroom

Veg. Augraten

Baked Spaghetti Cheese

Macroni Cheese

Burmese Spaghetti

iv) Indian – Dawate Numaish

[Subzion ki Numaish]

Khoya Kaju

Veg. Kadai

Cheese Anguri

Veg. Mughlai

Veg. Jaipuri

Musgroom Butter Masala

Veg. Butter Masala

Navratna Korma

Shahi Vegetable

Veg. Jalfrezi

Stuffed tomato Masala

Green Peas Curry

Alu Mutter

Alu Gobi

Dum Alu

Kashmiri Dum Alu

Baingan Bharta

Veg. Kolhapuri

Dal Makhani

Tadka Dal

Yellow Dal

55 | P a g e
v) Kofta ki Numaish

Nargisi kofta

Kashmiri Kofta

Cheese kofta

Paneer Kofta

Malai kofta

Veg. kofta

vi) Paneer ki Numaish

Paneer butter masal

Paneer Kadhai

Paneer tikka Masala

Shahi Paneer

Mutter Paneer

Palak Paneer

Paneer Bhurji

Panner Korma
vii) Raitas & Salads

Green raita

Pineapple raita

Bundi Raita

Veg. Raita

Curd

Papad

Masala Papad

Green Salad
viii) Rice

Plain Rice

Veg. Fried Rice

56 | P a g e

Veg. Shahi Pulao

Kashmiri Pulao

Veg. Pulao

Hyderabadi. Biryani

Jeera rice
ix) Tandoori items

Roti

Butter Roti

Plain Paratha

Stuffed Paratha

Butter Paratha

Stuffed Naan

Cheese Naan

Butter Kulcha

Onion Kulcha
ix) Deserts

Gulab Jamun

Mal pua

Mal pua with Rabri

Kesaria jalebi

Gajar ka Halwa

Moong dal Halwa

Rasgulla

Raj Bhog

Ras mallai

Gur Ras mallai

Anarkali

57 | P a g e
1. Ability to meet need
The hustle and bustle of daily life coupled with the need of the people for entertainment
is an interesting combination I observed here. The people of Surat have an insatiable
appetite for food and their love for variety of cuisines is noteworthy. Surat came across to
me as the perfect place to start this project because the city does not have a Lounge till
now and also there is lack of multi cuisine served here. The menu that we have suggested
satisfies both these needs.

2. Competitive Advantage

• The concept is new and different for the people of Surat. This will be the first
Lounge in the city. So we will get the first mover advantage.
• Infiniti Restaurant & Lounge will feature special and international dishes, an
eclectic ambiance, and superior service. The menu which includes variety and
multi cuisine is not offered by many restaurants in Surat which will give us edge
over other restaurants. The Moving live counter service is also not offered by
other players. This will also give us competitive advantage.
• It will be a place which could serve a large clientele from the age group of 15 to
50. There will be place for youngsters as well as the family who visits the
restaurant.

58 | P a g e
3. Services offered

Our food will be of the finest quality and prepared with exotic flare. Customer
satisfaction will be the driving force behind our success. We will make some changes
in our menu every 6 months depending on the demand of our customer, but maintain
the 'favorites' for loyal patrons. Portions will be modestly sized, garnished with
stunning presentation.

The kitchen staff will have the best in culinary education and work experience. Their
creative talents will compliment one another. The lounge and restaurant staff will
offer the finest service in an electric atmosphere and offer customers an extraordinary
dining experience.

Excellent service in serving, decoration and presentation will be given. Home

delivery and parcel services will be handled with great care. Apart from this,
whenever parties will be organized, special care of the client and their guest will be
taken by us so that they have their best of the time.

59 | P a g e
VI. OPERATIONS:

As mine is a service industry there will not be any production taking place. So the format
of E&Y does not fit in here.
I am giving a complete comprehensive list of the equipments that I will be requiring for
converting my inputs into output.

There will be lot of equipments required as inputs for our industry. These equipments
will help us prepare the best quality food in the shortest period of time.

A. Operating Equipments Required:

As the restaurant will have a “LIVE COUNTER” and separate kitchen equipments
will be required accordingly. . For this purpose, the following equipments are needed
which includes mainly the kitchen equipment and music system. The details
regarding them are as under:

1. AUTOMATED MACHINES:
These machines will be imported by U.S.A which will be used for providing fuel
in the Live counter trolley. This will prepare good quality food and also keep it
warm.

2. OVENS:
For the purpose of making pizzas as per requirements and for the restaurant there
would be a requirement of 2 ovens. Each will have the capacity for making pizzas 5
at a time. 1 another would be required to make baked food in the kitchen. For this
purpose BAJAJ- 1602 T Oven will be used. It has function of baking, toasting,
grilling, roasting and barbecuing. Pizza oven will cost 17,350 and bigger one 25,000.

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2. GRINDERS:
2 grinders will be required for grinding, crushing and chopping of food being
processed. For this Morphy Richards-Maestro grinder will be used which will cost
20000 each

3. LIVE COUNTER TROLLEY

There will be 2 live counter trolley required in the restaurant, one for the Lounge and
another for the full dining restaurant. The cost for which will be 30000 each .

4. GAS STOVES :
There would be 8 gas stoves needed in the kitchen and 2 for the Live Counter area.
Sunflame- Regency will be used for the same. It has pilot or automatic ignition
system with 4 gas burners and an oven with a gas heating system. It has combined
oven and grill compartments with a capacity of 85 ltrs. Also included are features like
interior light and timer. It has one double ring burner, one extra large & two large &
one medium burners. This will cost 15,000 each.

4. FREEZERS:
The restaurant would require 5 freezers out of which 4 will be used to keep our
vegetables and dairy items fresh. 1 will be for storing the deserts of the Lounge. For
this I will purchase Whirlpool-Professional 405 L – ELITE which is 405 litres, 2 door
refrigerators with 121.5 litres freezer capacity and frost free. This will cost 35000
each.

5. COOKING MACHINES
Special cooking machines will be used which will be imported and will be used to
make best quality food. 3 such machines will be used.

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6. TANDOOR :
In the restaurant it is essential to have 2 tandoor for roties, nans, roomali roties, etc.
New tandoor will be built up every year, and its total cost including coal expenses
amount to Rs. 3000.

7. SET OF SPOONS, KNIVES AND FORKS :

For the restaurant and fast food joint there will be 400 units of spoons, knives .

8. SOUP BOWLS AND SPOONS :

We require 50 soup bowls and spoons to serve consumers in the restaurant.

9. TABLE CLOTHS AND NAPKINS :

The cost of table cloth and napkins amount to Rs. 30,000/- and since it is changed
every year it is considered as a variable expense.

10. SET OF PLATES :

Around 250 sets of plates would be required in the restaurant.

11. GLASSES AND JUGS :

The restaurant would require around 500 glasses and 100 jugs.

12. GAS CYLINDERS :

To satisfy the fuel requirement, 15 gas cylinders would be needed for which deposits
amounting to Rs. 4000 per cylinder would be paid to gas agencies. The requirement
per month is 55 gas cylinders which is enough for the fuel requirement.

13. MISCELLANEOUS EQUIPMENT :

Some other miscellaneous tools for kitchen would be required which would cost Rs.
50,000/-. These will include all vessels for cooking.

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 COST OF KITCHEN EQUIPMENTS (Fixed Cost)

PARTICULARS QUANTITY RATE AMOUNT

Tandoor 2 3000 6000

Live counter trolley 2 50,000 1,00,000
Oven [A] 2 17650 35300
Oven [B] 1 25000 25000
Grinder 2 20,000 40,000
Gas Stove 8 15000 120000
Freezer 5 35000 175000
Automated machines 2 5,00,000 10,00,000
Vessels 50000
Cooking machines 3 380000 1140000

Total 26,91,000

LOOSE TOOLS

PARTICULARS QUANTITY RATE AMOUNT [Rs.]

Jugs 100 100 10000
Glasses 500 15 7500
Set of Plates 250 100 25000
Soup of Bowls & Set 100 60 6000
of Plates
Spoons, Knives & 500 15 7500
Forks
TOTAL 56000

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ELECTRICAL EQUIPMENTS:
1. Computer :
For keeping records of accounts and other activities like purchase orders, one
computer would be required. Other than that personal laptop would be used for
storing data.

2. Air Conditioners :
Like all other prestigious restaurants, efficient and powerful split air-conditioner of 10
tons would be required. Bluestar-SCR-481SB will be installed which has this
capacity. So two such air conditioner will be fixed. Each will cost 10,8000.

3. Exhaust fans :
There will be 4 exhaust fans in the kitchen and 1 exhaust and 1 chimney at the Live
Counter area to have comfortable atmosphere for cooks as well as the customers in
the restaurant. Also a full motor operated chimney system will be installed which will
cost about 2,00000 with all the motors attached.

4. Billing Machine:
To serve the bills to the customers two billing machine i.e. computer would be
required.

5. R O Plant
To serve purified and safe water to customers, R O plant would be installed.

6. Water Coolers :
Two water coolers would be required to serve cool water especially in summer
season.

7. Generator :
In case of power failures and to avoid any kind of disturbance in our daily routine, we
will have to keep a generator.

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8. Printer Copier Fax
It will have the functions of scanner , printer , fax and copier which will be used for
the daily routine purpose. This will cost around 10,000.

9. LCD television
For entertainment purpose a L.C.D TV will be put up in the restaurant, 2 of which
will be required for the restaurant only. Each L.C.D will cost 30,000.

10. Music System :

As the plan is to have a theme restaurant , emphasis will be given on the music and
having a good sound system. For the restaurant music will be managed through
computer. But speakers would be installed , in all 8 small speakers will be needed in
the restaurant.
For the purpose of parties, music system will be required which would cost around
2,00,000 along with which one amplifier will be required for two speakers. So 2
amplifier will be required for the 4 speakers that we will be having. Each will cost
20,000.
Depending on the type of parties for the initial 3 months attractive lights , fog lights
etc will be hired as per the party requirement and simultaneously purchased if
demand is more.

11. Mobile Phones

3 mobile phone and connection will be required to give it to the manager and the
home delivery boy. Reliance connection will be taken for this.

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 COST OF ELECTRICAL EQUIPMENTS
PARTICUALRS QUANTITY RATE AMOUNT
Air Conditioner 2 108000 216000
Computer 1 50000 50000
Billing Machine 2 10000 20000
Music System 1 450000 450000
Generator 1 40000 40000
Exhaust 5 1000 5000
Chimney 2 1,00,000 2,00,000
Aqua guard 2 6000 12000
Water Cooler 2 8000 16000
Printer copier fax 1 10,000 10,000
L.C.D 2 30,000 60,000
Mobile Phone 3 6,000 18000
TOTAL 10,87,000

MUSIC SYSTEM

PARTICULARS QUANTITY RATE AMOUNT

Basic Music System 1 2,00,000 2,00,000
Speakers(Bose) 8 20000 160000
Amplifier 2 20000 40000
Pin Spots & Parcans 50000
TOTAL 450000

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 VEHICLES :

Rickshaw would be used to bring daily materials .For home deliveries and also
catering to party orders, one rickshaw and one Hero Puch costing Rs. 40,000 and Rs.
20,000 respectively would be purchased.

VEHICLE QUANTITY PRICE TOTAL

Scooter 1 40000 40000
Hero Puch 1 20000 20000
TOTAL 60000

FUEL :
In restaurant and disco, main source of fuel is gas cylinders. Approximate
requirement of industrial cylinders would be 32 per month, which would be available
from Gas Companies at a price of Rs. 420 per cylinder.
Total Estimated Cost of Fuel :
32 cylinders * 12 months * Rs. 420 = Rs. 1,62,000 (app)

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B. CAPACITY UTILISATION
[ No. of customers for weekdays ]

Lounge
Capacity : 60 customers per hour

CAPACITY NO.
TIME DURATION HOURS UTILIZATION OF CUSTOMERS
5 p.m. to 7.00 p.m. 2 50% 60
7 p.m. to 11 p.m. 4 75% 180
11 p.m. to 2 a.m. 3 35% 63
TOTAL 8 303

Restaurant
Capacity : 60 customer per hour

CAPACITY NO.
TIME DURATION HOURS UTILIZATION OF CUSTOMERS
10.30 a.m. to 12.30 2 25% 30
p.m.
12:30 a.m. to 3:30 3 35% 63
p.m.
7 p.m. to 8 p.m. 1 40% 24
8 p.m. to 10 p.m. 2 60% 72
10 p.m. to 11 p.m. 1 40% 24
TOTAL 9 213

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 CAPACITY UTILIZATION:
[ No. Of Customers for weekends]

LOUNGE:
It is estimated that the capacity utilization would be 50% more on weekends than on
weekdays. This is supported by the information provided by various fast restaurant
owners in Surat, which explains the food taking habits of Surtis on weekends.
So, the number of customers would be 300* 150% = 450 approximately turning up
per day on weekends.

RESTAURANT :
As said above, the capacity of restaurants on weekends would also increase by 50 %.
So, the number of customers would be 213 * 150% = 320 approximately turning up
per day on weekends
TOTAL NO. OF CUSTOMERS PER WEEK

NO. OF
PARTICULARS CUSTOMERS WEEKDAYS WEEKENDS TOTAL
Restaurant 213 5 1065
320 2 640
Sub Total [a] 1705
Lounge 303 5 1515
450 2 900
Sub Total [b] 2415
TOTAL [a+b]
4120

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C.REQUIREMENT OF RAW MATERIAL

VEGETABLES

CUSTOMERS REQUIREMENT Per TOTAL REQUIREMENT

(per week) PERSON (kg) (kg)
Lounge – 2415 0.2 483
Restaurant – 1705 0.2 341
TOTAL 824

Total Cost = Total Requirement in kg * Average Price per kg

= 824 * 25
= Rs 20500 ~ Rs 20600
Annual Purchases = Rs 20600 * 52 weeks
= Rs 10,71,200

BAKERY ITEMS:

ITEM QUANTITY COST per UNIT TOTAL

Pizza base [3”Baby] 50 1.00 50
Pizza Base[6”Baby] 150 1.50 225
Pizza Base[12”Large] 50 5.00 250
Burger Buns[2.5”Reg] 60 2.00 120
Burger 35 3.50 123
Buns[4’Jumbo]
Hotdog 60 2.00 120
buns[8”Regular]
TOTAL 888

Total = Rs 888 ~ Rs 900

Annual Cost = Rs 900 * 365 days
= Rs 3,28,500 approx.

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 DAIRY ITEMS:

ITEMS UNITS COST PER UNIT TOTAL

Milk 5 Ltr 14.00 70
Thick Shake 35 Ltr 14.00 490
4 Glass per Ltr
Paneer 10 Kg 70 700
TOTAL 1260

TOTAL = 1260 ~ 1300

Annual Cost = Rs 1300 * 365 days
= Rs 4,74,500

SUMMARY

VEGETABLES 10,71,200
BAKERY ITEMS 3,28,500
DAIRY ITEMS 4,74,500
TOTAL 18,74,200

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 BEVERAGES :
Around 1500 bottles of soft drinks per week will be required. After considering bulk
discount, the cost would be as under :
Annual Cost = 1500 bottles * 52 weeks * Rs 7 = Rs 5,46,000

PROVISION ITEMS
The provision items include various types of spices, sauces & complementary items.

ITEM QUANTITY [ Grams ] Amount [Rs]

Chilli Powder 500 100
Turmeric Powder 500 45
Garam Masala 50-100 50
Jeera 200-250 50
Cinnammon 100 44
Clove 100 39
Cardamom 50 42
Badiyan 50 31
Bay-Leaf 50 32
Sangeru 50 36
Jaayfal 30 42
Javantri 30 47
Asafetida 100 37
Black Pepper 100 48
Dry fruits 500 400
SUB – TOTAL 1043

Annual Cost = Rs 1043 * 30 days * 12 months

= Rs 3,75,480

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OIL REQUIREMENT:
Our cooking oil requirement will be as follows :
Annual Cost = Price per tin * Tin per day * Total yearly days
= 1100 * 1 * 365
= Rs 4,01500
SUMMARY
PROVISION ITEMS 375480
OIL 401500
CHEESE+SUGAR+OTHERS 1,40,000
CLOSING STOCK PER WEEK 13000
TOTAL 929980

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D. SUPPLIERS

1. Fruit and Vegetable requirement

For this delivery will be made by “Shiv Puja” Vegetable shop. They are located at City
light road and they supply to major restaurants in the city. Their terms and conditions are
acceptable and their rates are reasonable. An initial 3 months contract will be made with
them.

2. Bakery Products
Contract with Home Breads will be made which is the best bread shop in the city and
again it supplies to restaurants like Yellow chillies and Sheesha. Initially as per our
requirement (shape, size) we will initiate contract for 3 months with them.

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VII. MANAGEMENT AND OWNERSHIP:

A. Management Staff Structure

The strength of our management staff will position us for success. We will assemble a
team that will embrace different disciplines, accomplished professionals with
expertise in all areas of the business, including marketing and restaurant management.

1. Management Staff Organization chart

GENERAL MANAGER

LOUNGE MANAGER RESTAURANT MANAGER

PARTY MANAGER

SUPERVISORS SUPERVISORS

COOKS WAITERS

WAITERS CHEF

COOKS

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2. Narrative description of the chart

The chart shows that there will be a general manager in the Restaurant who will take care
of both the Lounge and the Restaurant. He would also take care of the parties. He would
be guiding and supervising the Lounge manager , Party manager and the Restaurant
Manager respectively.
These respective managers will take care of their sections. They will be fully in charge of
the smooth operations and customer satisfaction. They will give orders to the supervisors
who will take the order and take it to kitchen. Supervisor has to see that the food is being
served properly and on time.
Then there will be a main chef for the Lounge and restaurant who will give orders to his
subordinates who in turn will give orders to the waiters.
Waiters will be guided by then chefs as well as the supervisors.

B. MANAGEMENT STAFF

1. GENERAL MANAGER
Job Description :
Responsible for restaurant manager and Live Counter manager as well the parties that
will be organised.
Functions :
1. Planning of overall operations of restaurant, live counter and parties.
2. Budgeting of various resources
3. Providing directions to respective managers.
4. Making and executing strategies regarding finance and marketing.
5. Coordinating for better utilization of various resources.
6. Introducing new schemes and attractions for the customers regularly

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Job Specifications :
Qualifications:
Hotel management graduate
Good command over English, Hindi and Gujarati Language
Experience :
At least 5 years experience in hotel industry with at least 2 years experience at
managerial level.
Age : 25 – 35 years.
Salary : Rs 20,000 per month

2. Restaurant manager and Lounge Manager

Job description
1. Reporting to General Manager
2. Responsible for Supervisors, waiters and kitchen staff of respective units.
Functions :
1. Planning for day-to-day operations of restaurant.
2. Sourcing of raw materials.
3. Coordination among supervisors, waiters and kitchen staff.
4. Attending to customer complaints.
5. Taking staff decisions
6. Handling cash counter.
Job Specifications :
Qualifications :
Hotel Management graduate
Good command over English, Hindi and Gujarati languages.
Experience :
0-2 years
Age : 22- 27 years.
Salary : Rs 7,000 per month

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1. Party Manager
Job description :
1. Reporting to General Manager
2. Responsible for organizing party , coordinating the music and theme of the
restaurant and looking after the overall entertainment and attracting and retaining
the customers
Functions :
1. Planning for smooth operation of the parties
2. Marketing the services of parties and functions.
3. Coordinating to accommodate requirements of customers.
4. Arranging for contract manpower for functions and parties.
5. Handling and proper utilization of finance.
6. looking after the “theme of the day” of the restaurant
Job Specifications :
1. Qualifications :
Graduate from any discipline.
Having dynamic personality with sound knowledge of current trends among
youngsters.
Experience :
At least 2 years experience in hospitality industry.
Age : 20 – 30 years.
Salary : Rs 7000 per month

3. Supervisors [Restaurant / Lounge]

Job Description :
Reporting to Respective Unit managers
Responsible for waiters & kitchen staff
Functions :
1. Taking orders and supervising services of waiters.
2. Co-ordination among waiters and kitchen staff.

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3. Looking after availability of waiters at each table and customers being attended
on time.
4. Solving minor issues on the floor.
5. Giving bills and collecting cash.
Job Specifications:
1. Qualifications :
Graduate from any discipline.
Good command over English, Hindi, Marwari and Gujarati language.
Dynamic personality and good communication skills.
Experience : Not required.
Age : 20 – 30 years.
Salary : Rs 3000 per month.

4. Accountant : (Part Time)

Job Description :
Reporting to General Manager
Functions :
1. Basic accounting work for the firm.
2. Preparing tax statements.
3. Maintaining proper books of accounts.
Salary :
Rs 5000 per month.
Job Specification :
1. Qualification:
Commerce Graduate passed with first class.
2. Experience :
At least one year of experience in accounting field.
Age : 20 – 35 years.

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6. Waiters/Helper :
Around 12 waiters in restaurant and 4 waiters in the fast food joint will be required.
They should be at least high school passed with pleasant appearances. They will be
responsible to the supervisors and have the function of serving food and attending to
customers.

KITCHEN STAFF
1. CHEF (Restaurant & Lounge)
Name : Manbeer Singh
Job Description:
1. Reporting to Respective Unit managers and supervisors.
2. Responsible for cooks and kitchen staff.
3. Introducing new recipes and maintaining high quality and excellent food taste.
Functions :
1. Supervise and train cooks in cooking delicacies.
2. Submit list of day-to-day requirements to manager.
3. Maintaining inventories and its proper storage.
Job Specification:
1. Qualification
Hotel management graduate
2. Experience :
At least 5 years experience in the field.
3. Age : 25 – 40 years.
Salary : Rs 25,000 per month for Lounge chef and 20,000 for Restaurant chef

2. COOKS :
Four cooks for restaurant kitchen and 4 cooks for the lounge will be required who
have cooking experience in restaurants and are experts at it.
Salary : Rs 5000 per month.

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 3. Helpers, Cleaners and sweepers
Salary : Rs 2000 per month [helpers]
Rs 1000 per month [ cleaners]
4. Security Guards
2 permanent security guards will be kept who can also help in parking and crowd
handling .
Salary : Rs 2000 per month.
5. Disco Jockey (DJ) [ Part Time]
This will be booked as per the party needs and budget.

C. LEGAL STRUCTURE OF THE BUSINESS

1. Partnership

Ours will be partnership agreement whereby there will be 3 partners. The following three
partners will be there :

a. Mr. Atul Tulsiyan

b. Ms. Shruti Aggarwal
c. Mr. V.S. Banthiya

Mr. Atul Tulsiyan is a close friend of my father and in one of my conversations with him;
I found that he was also keen on opening up a speciality restaurant. Since I stay in
Ahmedabad and needed a localite who knows the city better, I found the perfect partner
in him.
Mr. V.S.Banthiya has been involved in a hotel business which he started 7 years back.
His expertise of the catering business will prove to be very valuable for the new venture

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D. OWNERS

1. Ms. Shruti Aggarwal

Qualifications :
B.com from H.L. Institute of Commerce
M.B.A (FB&E) from Nirma University

Percentage Ownership :
All the partners will have equal stake in the business

Involvement in the company :

She will look after the creative aspects of the business. She will be the marketing head
and will look after the customer needs, bring in new products and offerings. She would
take care of the public relations and will design the whole concept of the restaurant.

2. Mr. Atul Tulsiyan

Qualifications :
B.Com from Surat
He has a paper manufacturing unit business in which he is involved since 7 years but he
wants to get into food business as his family business has lot of members and does not
require so much human resource.

Percentage Ownership :
All the partners will have equal stake in the business

Involvement in the company:

He will look after estimating the trend in the industry. Apart from that he will also take
care of the human resource of the restaurant. Being a localitie he will be in constant touch
with them and will be able to easily recruit the required staff from the city itself.

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3. Mr. V.S. Banthiya

Qualifications :
He is an ex-Income tax commissioner. He retired before 7 years after which he started
with a BPO. After working for 5 years , before two years he opened up a hotel in Indore
under the name of “ Best International”. Now he is looking for expanding into other
cities.

Percentage Ownership :
All the partners will have equal stake in the business

Involvement in the company:

As he is already into this industry and already has a hotel in Indore we can take
advantage of his expertise in that industry. He will take care of the overall operations of
the restaurant.

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VIII. FUNDS REQUIRED

1. FUNDING REQUIREMENT

Total cost of project : 90,00,000

Sources of finance
1. Bank loan at 18% interest rate 60,00,000
2. Owner’s fund
Mr. Atul Tulsiyan 10,00,000
Mr. V.S. Banthia 10,00,000
Mr. Shruti Aggarwal 10,00,000
90,00,000

It is very clear from the given particulars that our capital structure includes owner’s funds
and a loan from any financial institution or a bank.

The venture is basically a partnership firm consisting of three partners and the profit and
loss of the organization will be shared equally.

We have approached Mr. Sunil Talati , a chartered accountant for the arrangement of
term loan of Rs. 60,00,000 at the rate of interest 18% p.a. and as informed by him, the
following information is required for the loan.
Purpose of the loan Project report
Details about capital investment Certificate of government approval
Declaration of the property Document for land agreement
Names and details about the guarantors Quotations for machinery and equipment
Quotations for he assets Statements of declaration of properties of
guarantors

We have been informed that these documents will help us in faster sanction of the loan.

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B. USE OF FUNDS

1. Working results

A. Purchases of Materials
(a) Raw Materials
1 Vegetables 10,71,200.00
2 Bakery Items 3,28,500.00
3 Dairy Items 4,74,500.00
18,74,200
(b) Provisions
1 Spices and Condiments 375480.00
2 Oil 401500.00
3 Cheese and Complimentaries 140000.00
4 Closing Stock 13000.00 929980.00
2804180.00

2. Closing stock :-
Closing stock would include only provisional items which are purchased weekly
because vegetables and dairy items are purchased daily. Hence, closing stock is the
amount of weekly purchases of provisional itmes.
Closing stock = Rs. 13,000

3. Capital expenditure

In order to plan the requirement of space, I approached a civil engineer, engaged in

business of consultation for civil works. He provided us with the following details
regarding the space required, as well as cost of land, construction and interior.
For a capacity of 60 persons each in restaurant and Lounge, the space required is 1.5
sq. yards per person.

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 GROUND FLOOR :
PARTICULARS AREA IN SQ. YARDS
Lounge 200
Kitchen & Storage [ 40% of Dining Area] 80
Reception, Waiting, Managers cabin & Toilets 80
TOTAL… 360

FIRST FLOOR:
PARTICULARS AREA & SQ. YARDS
Dining Hall 180
Kitchen & Storage 100
Reception, Waiting & Toilets 80
TOTAL… 360
COST
Cost of Land :
Land Requirement * Cost of Land
= 380 sq. yards * Rs 11000 per sq. yard
= Rs. 41,80,000

Cost of Construction :
Total Construction * Rate of construction
= 720 sq. yards * Rs. 1000 per sq. yard
= Rs 7,20,000
Cost of Interior :
RATE OF
SR. NO PARTICULARS SPACE & RATE INTERIOR
01 Lounge 200 * 2400 480000
02 Restaurant 180 * 2400 432000
03 Reception, waiting 160 *2500 400000
etc.
TOTAL… 1312000

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 It is very important that we give special emphasis on our interior because a very good
and novel physical ambience will definitely attract and impress the customers.
In case of the restaurant, the interior will give a very formal and ethnic look since we
are serving Punjabi cuisine in it. The furniture will have intricate carving and studded
with velvet tapestry.
For the Lounge the interior matters the most. Special emphasis will be given here on
the furniture so that the people get a feel of relaxation and leisure. Also lot of parties
will be happening over here. Our interior has suggested us that at one corner , a
wooden floor 5 inch above from the ground will be given here , which can be
converted into a dance floor for the parties. That whole section can be given for dance
parties.

TOTAL COST
PARTICULARS QUANTITY RATE AMOUNT
LAND 380 11000 4180000
BUILDING & 720 1000 720000
CIVIL
INTERIOR 1312000
TOTAL… 6212000

4. DEBT RETIREMENT
Long term capital loan = 7000000
loan interest % 18%
Company will repay the loan in 7 yrs

Company will pay yearly

installments 1st yr 800000
2nd yr 800000
3rd yr 1000000
4th yr 1000000
5th yr 1000000
6th yr 1200000
7th yr 1200000

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1st year

Repayment of Balance
Total amount Interest paid loan Amount
long term loan 7000000 1260000 800000 6200000

2nd year
Repayment of Balance
Total amount Interest paid loan Amount
long term loan 6200000 1116000 800000 5400000

3rd year
Repayment of Balance
Total amount Interest paid loan Amount
long term loan 5400000 972000 1000000 4400000

4th year
Repayment of Balance
Total amount Interest paid loan Amount
long term loan 4400000 792000 1000000 3400000

5th year
Repayment of Balance
Total amount Interest paid loan Amount
long term loan 3400000 612000 1000000 2400000

6th year
Repayment of Balance
Total amount Interest paid loan Amount
long term loan 2400000 432000 1200000 1200000
Repayment of Balance
7th year Total amount Interest paid loan Amount
long term loan 1200000 216000 1200000 0
total amount 5400000 70,00,000

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X. FINANCIAL DATA

A. ASSUMPTIONS

Quantity Rs.

Cost of Kitchen Equipment (Fixed cost) 2691000

Loose tools 56,000
cost of Electrical Equipment 1087000
Music system 450000
Vehicles
Scooter 1 40,000
hero puch 1 20,000
Fuel 32 162000.72
Telephone Deposit 30000
Gas cylinder Deposit 60000
Beverage Deposit 3200
Intercom Deposit 10000
cylinder requirement per month 32
SALES :
sale of food on (weekdays) Rs./per person
Lounge 70
Restaurant 75

sale of food on (weekends) Rs./per person

Lounge 70
Restaurants 75
PARTIES:
Lounge Parties atleast 4 per month
minimum people for the party 30
charges per person 200

Family Parties atleast 2 per month

minimum people for the party 25
charges per person 250

Business Lunches atleast 3 per month

minimum people for the party 15
charges per person 150

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CAPACITY UTILISATION :
Capacity utilisation Capacity per hour
Lounge 60 customers
Restaurant 60 customers

capacity utilisation 50% more on weekends

CAPACITY UTILISATION person(week ends )

lounge 450
Restaurant 320

Fuel Requirement

gas cylinder required no. of months price total amount

32 12 420 161280

Statement showing details of

Loans and Advances : FIRST
YEAR

SUNDRY DEPOSITS
[a] Telephone Deposit 30000
[b] Gas cylinder Deposit 60000
[c] Beverage Deposit 3200
[d] Intercom Deposit 10000
103200
OTHER ADVANCES 1294389
TOTAL.. 1397589

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B. PROJECT COST

PARTICULARS AMOUNT TOTAL

Sources of funds
- Ownership Capital 3300000
- Borrowed Capital 7000000
TOTAL 10300000
Application of funds
- Land 4180000
- Building and civil works 720000
- Furniture & Interior 1312000
- Vehicles 60,000
- Equipments 3,834,000
- Deposits 103200
- Other Expenditure 90800

TOTAL… 10300000

C. DEPRECIATION:

RATE
STARTING OF
AMOUNT DEP.
ITEM [%]
Year 1 Year 2 Year 3
Building 720000 20 144000 115200 92160
Furniture 1312000 15 196800 167280 142188
Vehicles 60000 20 12000 9600 7680
Water Bore 500000 10 50000 45000 40500
Kitchen equipments 2691000 25 672750 504563 378422
Electrical Equipments 1087000 25 271750 203813 152859
Loose Tools 56000 33 18665 12444 8296
Fire Extinguisher 12500 10 1250 1125 1013

TOTAL 1440500 1367215 1059024 823118

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ANNEXURE TO
BALANCE SHEET
YEAR -1

Gross Net
Asset Block Depreciation Block
Opening Additions Closing Opening Addition Closing
Land – 1 0 4180000 4180000 0 0 0 4180000
Building 0 720000 720000 0 144000 144000 576000
Furniture 0 1312000 1312000 0 196800 196800 1115200
Vehicles 0 60,000 60000 0 12000 12000 48000
Water Bore 0 500000 500000 0 50000 50000 450000
Kitchen
Equipments 0 2691000 2691000 0 672750 672750 2018250
Electrical
Equipments 0 1087000 1087000 0 271750 271750 815250
Loose Tools 0 56,000 56000 0 18665 18664.8 37335.2
Fire Fighting
System 0 12500 12500 0 1250 1250 11250
TOTAL 0 10618500 10618500 0 1367215 1367215 9251285

ANNEXURE TO
BALANCE SHEET
YEAR -2

Gross
Asset Block Depreciation Net Block
Opening Additions Closing Opening Addition Closing
Land – 1 4180000 0 4180000 4180000
Building 720000 0 720000 144000 115200 259200 460800
Furniture 1312000 131200 1443200 196800 167280 364080 1079120
Vehicles 60000 0 60000 12000 9600 21600 38400
Water Bore 500000 0 500000 50000 45000 95000 405000
Kitchen
Equipments 2691000 1500000 4191000 672750 504563 1177313 3013688
Electrical
Equipments 1087000 500000 1587000 271750 203813 475563 1111438
Loose Tools 56000 0 56000 18664.8 12444 31109 24891
Fire Fighting
System 12500 0 12500 1250 1125 2375 10125
TOTAL 10618500 12749700 1367215 1059024 2426239 10323461

92 | P a g e
 ANNEXURE TO
BALANCE SHEET
YEAR - 3

Gross
Asset Block Depreciation Net Block
Opening Additions Closing Opening Addition Closing
Land – 1 4180000 0 4180000 4180000
Building 720000 0 720000 259200 92160 351360 368640
Furniture 1443200 157440 1600640 364080 142188 506268 1094372
Vehicles 60000 20000 80000 21600 7680 29280 50720
Water Bore 500000 0 500000 95000 40500 135500 364500
Kitchen
Equipments 4191000 1500000 5691000 1177313 378422 1555734 4135266
Electrical
Equipments 1587000 700000 2287000 475563 152859 628422 1658578
Loose Tools 56000 0 56000 31109 8296 39405 16595
Fire Fighting
System 12500 0 12500 2375 1013 3388 9113
TOTAL 12749700 15127140 2426239 823118 3249357 11877783

D. REVENUE :

SALES OF
FOOD

Unit Weekdays Weekends Total

(per
week)
Person Day Amount Total Person Day Amount Total
Lounge 303 5 70 106050 450 2 70 63000 169050
Restaurant 213 5 75 79875 320 2 75 48000 127875
TOTAL 296925

no. of
total sales per week weeks total revenue
296925 52 15440100
disc (-) 2% 308802
balance 15131298
vat tax (-) 12.5% 1681255
net sales 13450043

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SALE FROM
PARTIES

total
Particulars Days Person Amount Month amount
Lounge parties 4 30 200 12 288000
family parties 2 25 250 12 150000
business lunches 3 15 150 12 81000
additional revenue 1000

total revenue from

parties 520000
less:vat12.5% 57778
net 462222

TOTAL SALES Amount

Sales of food 13450043
sales from parties 462222
Total 13912265

Total VAT amount 1739033

Total gross sales 15651298

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 E. COST SHEET

Particulars Year 1 Year 2 Year 3

Opening Balance 0 1245854.358 2551579.512
Cash Inflow
Sales [Net of Tax] 13912265 15999104.62 18398970.32
Party revenue 520000 572000 657800
Long term Loan 7000000 0 0
Partners Capital 3300000 0 0
TOTAL CASH INFLOW 24732264.89 17816958.98 21608349.83

Cash Outflow
Purchase of land 4180000 0 0
Installment of new land 0 0 0
Building 720000 0 0
Furniture 1312000 131200 150880
Vehicles 60000 0 20000
Water Bore 500000 0 0
Kitchen Equipments 2691000 1500000 1500000
Electrical Equipments 1087000 500000 700000
Registration Fees 20000 0 0
Fire Extinguisher 12500 0 0
Other advances 1294389 0 0
Telephone Deposit 30000 0 0
SUB TOTAL….c/o. 11906889 2131200 2370880

Particulars Year 1 Year 2 Year 3

SUB TOTAL….b/f. 11906889 2131200 2370880
Gas Cylinder Deposit 60000 0 0
Intercom Deposit 10000 0 0
Beverage Deposit 3200 0 0
Preliminary Expenses 38230 0 0
Purchase of Materials 2804180 3224807 3708528.05
Tandoor restructuring 3000 3450 4000
Electricity Expenses 960000 1056000 1214400
Vehicle Petrol & maintenance 12000 13800 15870
Salary 2016000 2217600 2439360
Paper plates & Napkins 100000 115000 130000
Telephone Charges [Bill] 60000 69000 75000
Fuel Expenses 161280 185472 215000
Interest on Term Loan 1260000 1116000 972000
Uniform Expenses 70000 80500 85000
Sundry Expenses 12000 13800 15870
Audit Fees 7500 7500 7500
Insurance Fees 125000 143750 160000
Purchase of Beverages 546000 627900 722085
Packing Materials 20000 23000 26450

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 License Fees 15000 15000 15000
Printing & Stationery 20000 23000 25000
SUB TOTAL….c/o. 20210279 11066779 12201943.05

Particulars Year 1 Year 2 Year 3

SUB TOTAL….b/f. 20210279 11066779 12201943.05
Table Cloths 30000 34500 40000
Loose Tools 56,000 64400 75000
Advertisement 1750000 1000000 1000000
Income Tax [35%] 1080131.531 1939700.468 2576906.227
Repayment of Loan 8,00,000 800000 1000000
Withdrawals 360000 360000 360000
Sub Total 23486410.53 15265379.47 17253849.28

Net Cash Outflow 23486410.53 15265379.47 17253849.28

Closing Balance of Cash 1245854.358 2551579.512 4354500.551

Sub total…. 24732264.89 17816958.98 21608349.83

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F. PROFIT & LOSS A/C

Particulars Year 1 Year 2 Year 3

Sales 14432265 16571104.62 19056770.32
closing stock - opening 13000
Total income (a) 14445265
Expenses:
Salary 2016000 2217600 2439360
Interest on Borrowing 1260000 1116000 972000
Uniform expenses 70000 80500 85000
Depreciation 1367215 1059024 823118.0462
Registration Fees 20000 0 0
Audit Fees 7500 7500 7500
Insurance Premium 125000 143750 160000
Licence fees 15000 15000 15000
Sundry Expenses 12000 13800 15870
Printing & Stationery 20000 23000 25000
Advertising Cost 1750000 1000000 1000000
Total Fixed Costs (b) 6662715 5676174 5542848.046

Paper (Plates & Napkins) 100000 115000 130000

Table Cloth 30000 34500 40000
Packing Materials 20000 23000 26450
Vehicle [Petrol &
Maintenance] 12000 13800 15870
Tandoor Restructuring 3000 3450 4000
Purchase of Materials 2804180 3224807 3708528.05
Purchase of Beverages 546000 627900 722085
Electricity 960000 1056000 1214400
Telephone expenses 60000 69000 75000
Fuel cost 161280 185472 215000
Total Variable Costs ( c ) 4696460 5352929 6151333.05

Net profit (a –b –c ) PBT 3086090 5542002 7362589

Tax ( 35 % ) 1080132 1939700.468 2576906.227

Profit after tax 2005959 3602301.154 4785682.493

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G. DISCOUNTED CASH FLOW

Particulars Year 1 Year 2 Year 3

Sales 14432265 16571104.62 19056770.32
closing stock - opening 13000
Total income (a) 14445265
Expenses:
Salary 2016000 2217600 2439360
Interest on Borrowing 1260000 1116000 972000
Uniform expenses 70000 80500 85000
Depreciation 1367215 1059024 823118.0462
Registration Fees 20000 0 0
Audit Fees 7500 7500 7500
Insurance Premium 125000 143750 160000
Licence fees 15000 15000 15000
Sundry Expenses 12000 13800 15870
Printing & Stationery 20000 23000 25000
Advertising Cost 1750000 1000000 1000000
Total Fixed Costs (b) 6662715 5676174 5542848.046

Paper (Plates & Napkins) 100000 115000 130000

Table Cloth 30000 34500 40000
Packing Materials 20000 23000 26450
Vehicle [Petrol &
Maintenance] 12000 13800 15870
Tandoor Restructuring 3000 3450 4000
Purchase of Materials 2804180 3224807 3708528.05
Purchase of Beverages 546000 627900 722085
Electricity 960000 1056000 1214400
Telephone expenses 60000 69000 75000
Fuel cost 161280 185472 215000
Total Variable Costs ( c ) 4696460 5352929 6151333.05

Net profit (a –b –c ) PBT 3086090 5542002 7362589

Tax ( 35 % ) 1080132 1939700.468 2576906.227

Profit after tax 2005959 3602301.154 4785682.493

dep (+) 1367215 1059024 823118.0462

Free Cash flow 3373173 4661325 5608801

repayment of loan (-) 800000 800000 1000000

Net cash flow 2573173 3861325 4608801

Disc. Cash flow 2180655.388 2773143.604 2805058.294

98 | P a g e
 H. BALANCE SHEET
As At the As At the At the end of
Particulars end of Year 1. end of Year 2 Year 3
Sources of funds :

Partners Capital a/c 2940000 2940000 5,040,000

Profit & Loss a/c 2,005,959 3,602,301 4,785,682

Total [Owners Funds] 4,945,959 6,542,301 9,825,682

Long Term Loan–Op Bal 7,000,000 6,200,000 5,400,000

Less:Repayment during the
yr 800,000 800,000 1,000,000

Long term loan–Closing Bal 6,200,000 5,400,000 4,400,000

TOTAl… 11,145,959 11,942,301 14,225,682

Application of Funds :

Fixed Assets – Gross Block 10,618,500 12,749,700 15,127,140

Less : Depreciation Reserve 1,367,215 2,426,239 3,249,357

Net Fixed Assets 9251285 10,323,461 11,877,783

Curr Assets,Loans &

Advances

- Inventories 13000 13000 13,000

- Cash & Bank balance 1245854 2551580 4,354,501

Fire extingushier 12500 0 -

- Loans & Advances 1397589 1054148 280,269

Total Current Assets 2668943 3618728 4,647,770

Less:Curr provisions & liab 1739033 1999888 2299871
Net current assets 929910 1618839 2347899
Misc. (adj. figure) 926534 0 0
Preliminary expenses 38230 0 0

TOTAL 11145959 11942301 14,225,682

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I. PAY BACK PERIOD

FIXED COST

Particulars Amount [Rs]

Salary 2016000
Interest on Borrowing 1260000
Uniform expenses 70,000
Depreciation 1367215
Registration Fees 20,000
Audit Fees 7,500
Insurance Premium 125000
Licence fees 15,000
Sundry Expenses 12,000
Printing & Stationery 20,000
Advertising Cost 1750000
Total Fixed Costs 6662715

VARIABLE COST

Particulars Amount [Rs]

Paper (Plates & Napkins) 100000
Table Cloth 30000
Packing Materials 20000
Vehicle [Petrol &
Maintenance] 12000
Tandoor Restructuring 3000
Purchase of Materials 2804180
Purchase of Beverages 546000
Electricity 960000
Telephone expenses 60000
Fuel Cost 161280

Total Variable Costs 4696460

P/V Ratio contribution/sales

contribution sales-variable cost
Break even point Fixed Cost/ PV Ratio

contribution 9735805
P/V Ratio 0.674586073
Break even point 9876745.269

100 | P a g e
 PAY BACK
PERIOD

YEAR CASH FLOW CUMULATIVE

CASH FLOW
1 3373173 3373173
2 4661325 8034499
3 5608801 13643299

Initial investment 10300000

cumulative cash flow 13643299

pay back period 2.264848113

J. NPV & IRR

P.V.
YEAR CFAT FACTOR@18% CFAT*P.V.FACTOR
1 3373173 0.847457627 2858621.49
2 8034499 0.71818443 5770251.732
3 13643299 0.608630873 8303733.008
TOTAL 16932606
Less: initial investment 10300000
N.P.V. 6632606

INITIAL OUTFLOW -10300000

1 3373173
2 8034499
3 13643299
P.V factor @ 18%

IRR 47%

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